I live and work in Albany NY yet my employer takes NYC taxes out of me. Can this be done?

In one word, no. How does your employer explain this?

NYS taxes, of course. NYC taxes, no.

Actually, it CAN be done.

It is NOT proper if the worker does not work in NYC, but it CAN be done. However, it is, at worst, a nuisance, because the NYC income tax calculations is embedded in the NY state tax forms (IT-201 for residents; IT-203 for part-year or non-residents), so the withheld taxes are pooled with the withheld taxes for the state income taxes.

Hence, when the OP files his/her return, the withheld NYC taxes will be combined with the state withheld taxes and, if the return is completed accurately, will be return to him/her as a refund.

"Atlanta" is correct, of course - it CAN be done and, in your case, it HAS been done. I was referring to the legality or common sense of deducting NYC taxes from a paycheck when the person does not owe NYC taxes, thus reducing the weekly gross income.

Judy:

I made that because improper withholding happens a lot more than you think.